EPS of 6c beat estimates of 4c; revenue of $156M beat estimates of $144.1M. 4Q sales rose 10.1% to $156 million, led by QNX and a return to growth in Secure Communications, as the company exited a long restructuring and shifted its focus back to growth. QNX revenue increased 19.6% as prior design wins moved into production, while the backlog builds. QNX sales are set to rise 11.4% based on the midpoint of fiscal 2027 guidance, buoyed by broader adoption in autos and growing traction in other industries. Secure Communications revenue was up 8% following five quarters of decline, lifted by higher defense and sovereign security spending. Margins are expected to be largely stable this year, based on guidance, with some upside possible from strength in Secure Communications, while QNX profitability is set to be roughly flat on higher growth investments. It was a much better performance by the company. Still, one quarter is not yet a trend, but it is encouraging. The stock is 22x earnings currently.
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